Homeowner confidence is surging with nine out of 10 predicting property prices will rise over next six months, according to new research out today.
The average homeowner predicts 5.7% increase in property prices, rising to 8.3% in London, the latest Zoopla Housing Market Sentiment Survey shows.
Some 89% of UK homeowners expect house prices to rise over the next six months, up from 80% last quarter and representing a record four-year high.
Confidence in mortgage availability has also jumped to a four-year high.
In a sign of surging confidence in the housing market, the survey of 9,140 UK homeowners found that only 4% now predict house prices will fall over the next six months, down from 7% in Q2 and 17% in Q3 last year.
For the first time in three years, optimistic owners are expecting property prices to rise by over 5% in the next six months.
Homeowners are predicting an average 5.7% increase in home values in their area between now and March next year, up from 4.8% last quarter and 3.4% in Q3 last year.
With the next phase of Help to Buy taking effect and lending to first-time buyers at its highest since 2007, confidence in mortgage availability has also risen to a four-year high.
The proportion of homeowners who believe it is easier to get a mortgage compared to three months previously has more than tripled over the past year, from 11% in Q3 2012 to 37% today.
Londoners continue to be the most optimistic, with 97% expecting a rise in house values in their area over the next six months. Owners in the capital predict average growth of 8.3% over this period, some way above the nationwide UK average of 5.7%.
The North East, North West and Wales have the lowest percentage of homeowners predicting rising home values by March next year, but that figure is still a healthy 84%.
But all 11 UK regions have seen an increase in the percentage of homeowners who think house values will rise over the next six months.
The most significant increase in homeowner confidence has been in the West Midlands and Yorkshire and the Humber, where the proportion of owners who believe property prices will increase over the next six months has risen from 78% to 90% and 72% to 84% respectively.
Lawrence Hall of Zoopla.co.uk said: “While London remains the forerunner in homeowner optimism, confidence in the property market is surging across the whole UK.
"Confidence is the bedrock for healthy property transactions but it can’t work in isolation. Fortunately, mortgage lending is on the rise, first-time buyers are returning to the market, and the second phase of the Help to Buy scheme should help boost confidence further across the country and not just in London.
"All of this bodes well for a healthier market and could lead to more and more transactions, which in turn will create a more sustainable market.”
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